A new report finds that international buyers of luxury goods in London also purchase high-end homes in the capital’s retail districts

A new study by Rokstone, a London-based boutique real estate firm, found a strong correlation between international buyers of luxury goods and prime property in the English capital.

As reported by Wealth Adviser, the study saw that overseas buyers of designer goods in Knightsbridge, Mayfair and Marylebone also invested in luxury residences in those famed retail districts.

In rank order, the top luxury retail and property shoppers in London are purchasers from Saudi Arabia, Qatar and China. Since the start of 2015, luxury retail spending in central London by shoppers from Saudi Arabia is up 28% year-on-year, with the average spend per transaction averaging GBP1,495 (about US$2,300). Similarly, residential property sales in PCL to Saudi purchasers is up 18% YOY, with the average spend per transaction ranging from GBP5 million to GBP20 million (about US$7.7 million to about US$31 million).

Likewise, retail spending in London by shoppers from Qatar is up 12% YOY, with the average spend per transaction averaging GBP1,906 (about US$2,900). Residential property sales to Qatari buyers is also up 15% YOY, with the average spend per transaction ranging from GBP3 million to GBP15 million (about US$4.6 million to about US$23 million).

Retail spending in the capital by Chinese shoppers is up 9% YOY, with the average spend per transaction averaging GBP1,450 (about US$2,200). Likewise property sales in London to Chinese purchasers is up 3% YOY, with the average spend per transaction ranging from GBP450,000 to GBP1.5 million (about US$700,000 to about US$2.3 million).

Rokstone highlight that over 80% of all property purchases by buyers from Saudi Arabia and Qatar are in the districts of Knightsbridge, Mayfair and Marylebone, and this is also the key locations where they do the bulk of their luxury retail shopping. Together, Saudi and Qatari shoppers account for 16 per cent of all overseas retail sales in London’s West End. Chinese property investors look beyond London’s West End and also buy in the City of London, Canary Wharf, Deptford and Stratford. Similarly, whilst Chinese shoppers account for 20% of total overseas shopper spending in London’s West End, they also shop in Westfield Stratford, Canary Wharf and Westfield White City.

The report found a corresponding that drop in residential purchases from countries which had also displayed a decline in luxury retail purchases.